The Directors of Thor Mining PLC (“Thor” or the “Company”) (AIM, ASX: THR) are pleased to announce a step forward in the potential commercial enhancement of Molyhil, the Company’s Australian tungsten and molybdenum project in the Northern Territory.
Ore sorting testwork has been progressively undertaken with the objective of increasing the portion of the Molyhil known mineralisation that could be economically extracted to produce tungsten and molybdenum concentrates. Results from this recently completed work have been reviewed internally and the Board expects that this testwork could lead to an enhancement of the economic potential and therefore implicit underlying value of the Molyhil project.
Highlights:
· Thor has previously published a Definitive Feasibility Study demonstrating a project NPV of A$67million (approximately UK£39million), further details for which are available on the Company’s website (refer to the Company’s announcement of 12 January 2015). Outcomes from ore sorting testwork were included in this study;
· Recent ore sorting testwork has achieved substantially improved outcomes which the Company believes have the potential to materially increase the portion of the Molyhil resource estimate which is economic to recover;
· An improvement in rejecting waste material, to 41% of total sample mass, from ore sorting, with the latest trials on ore averaging 0.23% WO₃. This compares with previous sorting testwork, achieving waste rejection of between 15% and 25% of the total sample mass, on ore grading between 0.35%WO₃ and 0.56% WO₃.
Mr Mick Billing, Executive Chairman, commented:
“Thor is taking steps towards accelerated commercialisation of its key projects, including Molyhil.”
“The impact of the ore sorting work undertaken, all other assumptions unchanged, is potentially to increase that portion of the mineral resource estimate which converts to the ore reserve, and therefore to increase the potential mine life of Molyhil.”
“Increased conversion to ore reserve and an extended mine life, if applied to Molyhil, could materially enhance the value proposition of this project, at a time when there is increasing vibrancy in the tungsten sector, particularly with the rising tungsten commodity price in 2017.”
“We have previously signalled that we have identified cost reductions in both operating and capital cost estimates, and these will be incorporated, with these sorting results, in a review of the Open Cut Ore Reserve for Molyhil, the results of which we expect shortly, and will be announced when available.”
Further Information:
Notwithstanding the robust economics already demonstrated, the Company has undertaken a number of initiatives to further enhance this project from a commercial perspective. An important element of this has been detailed work to enhance the ore sorting technology proposed for Molyhil to maximise the return available from existing known mineralisation.
The ore sorting testwork, consistent with the Company’s commercialisation strategy, is aimed at improving the mine life and economic returns for the Molyhil Tungsten project in the Northern Territory of Australia. The process involved testing Molyhil mineralisation of a lower tenor than prior testwork, with outcomes demonstrating a substantially higher gangue material rejection rate.
Previous ore sorting testwork on ore grading between 0.35%WO₃ and 0.56% WO₃, had generated waste rejection of between 15% and 25% of the total sample mass.
Latest sorting trials on ore grading 0.23% WO₃ resulted in a rejection of waste material representing 41% of the total mass.
